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Official Publication of the Washington Metropolitan Auto Body Association (WMABA)
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www.grecopublishing.com
www.wmaba.com
February 2015Volume 9, No. 2
$5.95
RESULTSOF WMABA’SEXPANDED
LABOR RATESURVEY
Page 39
3February 2015
4 February 2015
Images © www.thinkstockphoto.com
DEPARTMENTS
6 Calendar of Events
10 Editor’s MessageJOEL GAUSTEN
12 Executive Director’sMessageJORDAN HENDLER
14 What’s WMABA Up To?
15 WMABA MembershipApplication
44 Industry SpotlightRyan Friedlinghaus to Appearat NORTHEAST® 2015
46 President’s MessageDON BEAVER
46 In Memoriam
50 Advertisers’ Index
5February 2015
18LOCAL NEWS
CALIBER JOINS FORCES WITH CRAFTSMAN,POHANKAWMABA mainstays enter a new era.
NATIONAL NEWSAUTOMAKERS RESPOND TO AIRBAG RECALLDEMANDSManufacturers announce plans to address adangerous dilemma.
LAWSUITS AGAINST INSURERS GAIN MOMENTUMAn update on various efforts to fight back.
CONTENTSFebruary 2015
28Some important names to remember during thislegislative session.BY TYLER BENNETT, GOVERNMENT RELATIONS CONSULTANT
LEGAL PERSPECTIVENEW COMMITTEES FOR THE NEW YEAR
39COVER STORYFILLING IN THE BLANK:INSIDE WMABA’S NEWLABOR RATE SURVEY - PART 2
WMABA’s latest project revealsan uneasy industry. BY JOEL GAUSTEN
20
34
Views on the real auto body world.BY LARRY MONTANEZ III, CDA AND JEFF LANGE, PE
TECHNICAL FEATUREWHERE IT ALL WENT WRONG: STEERING,PARTS ISSUES, LABOR RATES, TRAINING,EQUIPMENT & MORE
32This technician and teacher tells us what he thinks ittakes to be successful in this industry. BY JACQUELYN BAUMAN
TECHNICIAN OF THE MONTHABE SELLS
24
February 17, 2015whEEl AlignMEnt & diAgnoStic AnglESKeystone Linthicum, Linthicum, MDBluEPrinting ProcESS & dAMAgE diScovEryCambridge Auto Body, Cambridge, MDcolor thEory, Mixing tonErS & tinting Harrison Body Works, Richmond, VA
February 18, 2015AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgEAnAlySiSN T Auto Body Inc., Alexandria, VAAutoMotivE FoAMSRefinish Solutions, Springfield, VAwhEEl AlignMEnt & diAgnoStic AnglESSouthern Collision Center, Chesapeake, VA
February 19, 2015AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgEAnAlySiSKing Volkswagen, Gaithersburg, MDPlAStic & coMPoSitE rEPAirFrederick Co. Career & Tech, Frederick, MD AdhESivE BondingParrish Body Shop II Inc., Fredericksburg, VAAdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgEAnAlySiSHarrison Body Works, Richmond, VAPlAStic & coMPoSitE rEPAirCoxton’s Gold Team Collision Center, Yorktown, VArEPlAcEMEnt oF StEEl unitizEd StructurESRefinish Solutions, Springfield, VAwEldEd & AdhESivEly BondEd PAnEl rEPlAcEMEntDelcastle VoTech, Wilmington, DE
February 24, 2015color thEory, Mixing tonErS & tintingCoxton’s Gold Team Collision Center, Yorktown, VA SuSPEnSion SyStEMSHarrison Body Works, Richmond, VA
February 26, 2015StEEl unitizEd StructurES, tEchnologiES & rEPAirHarrison Body Works, Richmond, VAAutoMotivE FoAMSRosner Collision Center, Fredericksburg, VAPlAStic & coMPoSitE rEPAirDelcastle VoTech, Wilmington, DE
March 3, 2015ovErviEw oF cyclE tiME iMProvEMEntS For thEcolliSion rEPAir ProcESSHarrison Body Works, Richmond, VA whEEl AlignMEnt & diAgnoStic AnglESCoxton’s Gold Team Collision Center, Yorktown, VA rEPlAcEMEnt oF StEEl unitizEd StructurESState Farm, Silver Spring, MD rAck & Pinion & PArAllElogrAM StEEring SyStEMSDelcastle VoTech, Wilmington, DE
March 5, 2015corroSion ProtEctionHarrison Body Works, Richmond, VASEctioning oF StEEl unitizEd StructurESRefinish Solutions, Springfield, VAAdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgEAnAlySiSAutomotive Collision Technologies, Randallstown, MD
March 7, 2015whEEl AlignMEnt & diAgnoStic AnglESN T Auto Body Inc., Alexandria, VA
March 10, 2015MEASuringHarrison Body Works, Richmond, VAundErStAnding & PrEvEnting rEFiniSh dEFEctSCanby Motors Collision Repair, Aberdeen, MD
March 11, 2015StEEl unitizEd StructurES tEchnologiES & rEPAirN T Auto Body Inc., Alexandria, VA
CALENDAR OFEVENTS
February 3, 2015AluMinuM ExtErior PAnEl rEPAir & rEPlAcEMEntHarrison Body Works, Richmond, VA StructurAl StrAightEning StEElCambridge Auto Body, Cambridge, MDPlAStic & coMPoSitE rEPAirState Farm Silver Spring, Silver Spring, MD
February 4, 2015AdhESivE BondingN T Auto Body Inc., Alexandria, VA
February 5, 2015AdhESivE BondingHarrison Body Works, Richmond, VA vEhiclE tEchnology & trEndS 2015Automotive Collision Technologies, Randallstown, MD AdvAncEd StEEring & SuSPEnSion SyStEMSdAMAgE AnAlySiSCoxton’s Gold Team Collision Center, Yorktown, VAvEhiclE tEchnology & trEndS 2015Southern Collision Center, Chesapeake, VAvEhiclE tEchnology & trEndS 2015Delcastle VoTech, Wilmington, DE
February 7, 2015BluEPrinting ProcESS & dAMAgE diScovEryTristate Collision Center, Columbia, MD
February 10, 2015Full-FrAME PArtiAl rEPlAcEMEntHarrison Body Works, Richmond, VAFull-FrAME PArtiAl rEPlAcEMEntCoxton’s Gold Team Collision Center, Yorktown, VAcorroSion ProtEctionCambridge Auto Body, Cambridge, MDvEhiclE tEchnology & trEndS 2015Canby Motors Collision Repair, Aberdeen, MD
February 11, 2015corroSion ProtEctionRefinish Solutions, Springfield, VA
February 12, 2015Full-FrAME PArtiAl rEPlAcEMEntRefinish Solutions, Springfield, VAFull-FrAME PArtiAl rEPlAcEMEntRadley Chevrolet, Fredericksburg, VAPlAStic & coMPoSitE rEPAirKunkel’s, Baltimore, MD StAtionAry glASSHarrison Body Works, Richmond, VAvEhiclE tEchnology & trEndS 2015Frederick Co. Career & Tech, Frederick, MD SEctioning oF StEEl unitizEd StructurESSouthern Collision Center, Chesapeake, VA
6 February 2015
March 20-22, 2015NORTHEAST® 2015 Automotive Services ShowMeadowlands Exposition Center, Secaucus, NJFor more information, visit www.aaspnjnortheast.comor turn to page 44.
CLASS LISTINGS
7February 2015
Industry training opportunitiesand don't-miss events.
March 12, 2015Full-FrAME PArtiAl rEPlAcEMEntSouthern Collision Center, Chesapeake, VAcolor thEory, Mixing tonErS & tinting Harrison Body Works, Richmond, VA SquEEzE-tyPE rESiStAncE SPot wEldingRadley Collision of Stafford, Fredericksburg, VASquEEzE-tyPE rESiStAncE SPot wEldingCoxton’s Gold Team Collision Center, Yorktown, VAcolor thEory, Mixing tonErS & tintingFrederick Co. Career & Tech, Frederick, MD SEctioning oF StEEl unitizEd StructurESKunkel’s, Baltimore, MD
March 15, 2015AltErnAtivE FuEl vEhiclE dAMAgE AnAlySiS & SAFEtyRadley Chevrolet, Fredericksburg, VA
March 17, 2015Full-FrAME PArtiAl rEPlAcEMEntKeystone Linthicum, Linthicum, MD SquEEzE-tyPE rESiStAncE SPot wEldingHarrison Body Works, Richmond, VA
March 18, 2015color thEory, Mixing tonErS & tinting Refinish Solutions, Springfield, VAwhEEl AlignMEnt & diAgnoStic AnglESRadley Collision of Stafford, Fredericksburg, VA
March 19, 2015AluMinuM ExtErior PAnEl rEPAir & rEPlAcEMEntSouthern Collision Center, Chesapeake, VArAck & Pinion & PArAllElogrAM StEEring SyStEMSHarrison Body Works, Richmond, VAFull-FrAME PArtiAl rEPlAcEMEntKing Volkswagen, Gaithersburg, MD whEEl AlignMEnt & diAgnoStic AnglESFrederick Co. Career & Tech, Frederick, MD
March 24, 2015rEPlAcEMEnt oF StEEl unitizEd StructurESHarrison Body Works, Richmond, VA whEEl AlignMEnt & diAgnoStic AnglESDelcastle VoTech, Wilmington, DE
March 26, 2015ovErviEw oF cyclE tiME iMProvEMEntS For thEcolliSion rEPAir ProcESSSouthern Collision Center, Chesapeake, VAAdvAncEd StEEring & SuSPEnSion SyStEMSdAMAgE AnAlySiSRadley Chevrolet, Fredericksburg, VASEctioning oF StEEl unitizEd StructurESHarrison Body Works, Richmond, VA
March 31, 2015hAzArdouS MAtEriAlS, PErSonAl SAFEty &rEFiniSh SAFEtyHarrison Body Works, Richmond, VA
www.i-car.com or(800) 422-7872 for info
8 February 2015
9February 2015
Rodney Bolton ([email protected]) 410-969-3100 ext. 250Mark Boudreau ([email protected]) 703-671-2402
Kevin Burt ([email protected]) 301-336-1140Bobby Wright ([email protected]) 434-767-4128
AdMiniStrAtionExEcutivE dirEctorJordan Hendler ([email protected]) 804-789-9649wMABA corPorAtE oFFicEP.O. Box 3157 • Mechanicsville, VA 23116
StAFFPuBliShEr thomas greco
dirEctor oF SAlES Alicia [email protected]
Editor Joel [email protected]
MAnAging Editor Jacquelyn [email protected]
Art dirEctor lea [email protected]
oFFicE MAnAgEr Sofia [email protected]
PUBLISHED BY TGP, Inc.244 Chestnut St., Suite 202Nutley, NJ 07110973-667-6922 FAX 973-235-1963
Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily rep re sen ta tions of TGP Inc. orof the Washington Metropolitan Auto BodyAssociation (WMABA). Copyright © 2014Thomas Greco Publishing, Inc.
LET’S HAVESOME FUN
Considering my position as editor of amajor industry trade publication, it isn’t surpris-ing that a good portion of my time is spent field-ing complaints and concerns from repairfacilities and vendors. The auto body professionisn’t going to get any easier, and I understandand empathize with the fears and frustration Iencounter over the phone and via email on adaily basis. With this in mind, I have a specialrequest for the readers of Hammer & Dolly.
Before putting down this magazine, I wantyou to think of at least one thing in this industrythat excites or inspires you. Maybe it’s that clas-sic restoration job at home that is begging for anew paint job, or maybe it’s those hot rods yousaw as a kid that made you fall in love withdoing this stuff in the first place. Once you’veidentified something about the automotive worldthat puts a smile on your face, I want you tomake plans to indulge in it in some way over thenext seven days. Take some time – even if it’sonly an hour – to simply have fun with your pro-fession. When you strip away all this businessof cycle time, severity, rental times and every-thing else that adds stress to your day, you willremember how truly unique and enjoyablespending time with cars can be.
Joel gausten(973) 600-9288
MESSAGEEDITOR’S
10 February 2015
wMABA oFFicErSPrESidEnt don Beaver
[email protected] 443-539-4200 ext. 17061vicE PrESidEnt torchy chandler
[email protected] 410-309-2242trEASurEr Mark Schaech Jr.
[email protected] 410-358-5155SEcrEtAry John krauss
[email protected] 703-534-1818iMMEdiAtE PASt PrESidEnt Barry dorn
[email protected] 804-746-3928
BoArd oF dirEctorS
My work in the industry frequently puts me in contact with collision repair students andentry-level techs. In almost every conversation I have with these new and developing work-ers, they demonstrate an infectious love for the craft of auto repair and simply can’t wait toget started at a real shop. To these young people, spending their days in the auto body fieldis a thrilling opportunity. You remember that feeling, don’t you? It’s still within you; you justhave to take the time to find it again.
I know that the hard times you’re experiencing won’t suddenly disappear after readingthis message, but I truly hope that these words have provided some positive food forthought. The problems you’re having at your shop can wait; just take a moment and remindyourself of why you’re doing this – and how fulfilling it still is. And remember that, in this in-dustry, you are never truly alone. There are plenty of people out there willing, able andready to help you. If you are new to WMABA, please reach out to Executive Director JordanHendler at (804) 789-9649 to find out about the association’s efforts to improve the industry– and how you can make a difference. And have some fun – you’ve earned it! H&D
11February 2015
EXECUTIVE DIRECTOR’S Jordan hendler(804) 789-9649
MEMBERSHIPFOR APPLES...AND ORANGES
Let us start this off with stating the obvi-ous: It used to be that the difference betweentwo shops was, “Is it a dealer shop or an inde-pendent shop?” Then, there was the addedquestion of, “Are they DRP or non-DRP?” Now,the questions growing and morphing are: “Is itan MSO/network/group, dealer or independ-ent?” and, “Are they certified or non-certified,and with which OEM(s)?”
The “we are not apples-to-apples, butrather apples-to-oranges” argument is be-coming more relevant in our industry, as in-creased attention is being placed on theOEM-certified repair networks. There is a minorsimilarity to a DRP network in the consumer re-ferral sense, but a vast difference in the expec-tations for repair quality, training and
MESSAGE
12 February 2015
equipment, as well as overall processes forthe customer.
SCRS’ recent OEM Technology Sum-mit at the SEMA Show showcased manu-facturer reps speaking directly to this point.Their biggest concern is for the protection oftheir customer investment – the quality ofrepair and the experience they have duringthat process. Every one of those presenttalked about how it was the building block ofinitiating their program.
Therefore, I submit that many times,repairers are not fitting into the same “cate-gory;” but, in the eyes of insurers (or to thegeneral public), they are being compared tothose with differing business types. This isthe most apparent when talking about LaborRates. The problem for the industry is inter-nal: How do we distinguish ourselves intocategories so as to be compared morefairly? Is that a process worth pursuing?
When you get into the cover story(page 39), you can see answers to thequestions within the WMABA area Survey
that show a high percentage of respondentswho take issue with factors of insurance re-lations. You will also see that this is regard-less of the “type” of shop they are.Additionally, very prevalent responses areseen with the questions regarding neces-sary and/or performed operations. That theanswers are mostly the same is important tonote, because those areas are where themajority of repairers can work together tohelp arouse awareness of the issues theyface. This is where WMABA can focus to tryand make a difference. Exposure of industryissues is what the association is all about.
Whether you’re an apple or an orange,membership in WMABA is of great impor-tance to understanding, clarifying and creat-ing solutions to the problems all our “fruit”face each day. We bring forward informationso that you can make more informed deci-sions that lead to a healthier business andindustry.H&D
Whether you’re an apple oran orange, membership in
WMABA is of great importanceto understanding, clarifying
and creating solutions tothe problems all our“fruit” face each day.
BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161Phone: 410-689-3038Fax: 410-766-1275www.bobbell.com
WALDORF FORD2440 CRAIN HWY, WALDORF, MD 20601Phone: 301-843-3028Fax: 301-843-0334e-mail: [email protected]
TED BRITT FORD11165 FAIRFAX BLVD, FAIRFAX, VA 22030Phone: 703-673-2420Fax: 703-870-7982www.tedbrittparts.com
PLAZA FORD1701 BEL AIR RD, BEL AIR, MD 21014Phone: 410-879-3367Fax: 410-877-7248www.plazaford.com
SHEEHY FORD5000 AUTH RD, MARLOW HEIGHTS, MD 20746Phone: 301-899-6300Fax: 301-702-3650www.sheehyford.com
HAGERSTOWN FORD1714 MASSEY BLVD,HAGERSTOWN, MD 21740Phone: 800-200-0276Fax: 301-733-0603www.hagerstownford.com
KOONS FORD OF ANNAPOLIS2540 RIVA ROADANNAPOLIS, MD 21401Phone: 410-266-3083Fax: 410-224-4239www.koonsford.com
Contact these Ford or Lincoln Mercury dealers for all your parts needs:
© 2014, Ford Motor Company 13February 2015
WMABA MEMBERSHIP PROMOTION:GET YOUR QUARTER BACK
There has not been a better opportunity to join WMABA in thepast 10 years than right now. For the first quarter of 2015, the associ-ation is offering a special membership promotion for new members. Ifyou’re reading this, your first benefit is already being realized: Stayingup on the news in our area and beyond. You can save $200 off an an-nual membership ($700 regular price) or get one free quarter (a $195value) with the first quarter payment. Savings like this have not beenavailable in more than a decade!
Get Your Team JerseySupporting WMABA is an investment in the future of your busi-
ness and your industry. By becoming a member, you are representedin all of the places the Board or executive director goes. Whether at atrade show like SEMA, assisting with the SCRS OEM TechnologySummit regarding certified repairs or locally at the state capitol meet-ing legislators or testifying at a hearing, your interests – and the inter-ests of all repairers – are at the forefront of WMABA’s agenda.Though repairers often feel competitive, the association is a place forcamaraderie and community. Here, we’re all on the same team.
Get EducatedWMABA offers issue-specific topic-driven education throughout
the year. Participation in special events, such as the December 10limited-seating seminar and tour at the Audi Training Center, offeryour business the best opportunities to advance your understandingof changes within our industry.
The PlaybookThe association is your resource for all things. Whether you have
a question about current Labor Rate data, operations, customer inter-action, insurer relationships, vendor products or national news, yourassociation is the place to ask first. Through our national relation-ships, we are able to take issues to the foreground of places such asthe Society of Collision Repair Specialists, Collision Industry Confer-ence or to national contacts for insurers and vendors.
Locally, we research government regulations and oversight tomake sure the repair industry is protected from negative legislation.Represented in both Virginia and Maryland, WMABA proposes andopposes recommended bills that come into the legislature duringopen session. Also, we work with consumer-related entities, govern-ment agencies and other related industry organizations to ensure thatthe voices of the repairer and their customer are heard.
Many repairers take advantage of the knowledge and communitythat the association provides for navigating situations that arise. Asimple phone call or email can circumvent many of our members’issues.
Call the GameAs a member, you decide your personal level of participation. Do
you have an interest in committees that address particular issuesabout which you feel passionately? Would you want to be a Boardmember and assist in guiding the direction of the association? Howabout even sitting on the sidelines so you can focus on your ownbusiness? A positive answer to any of these questions is what we’relooking for! While WMABA would like to encourage your spirit of vol-unteerism, it is solely up to you at what level you get involved. H&D
Find more association updates atwww.wmaba.com.WHAT’S
UP TO?
14 February 2015
The minimum is getting yourmembership. The upcomingyear can start off with yourcommitment to the bettermentof your business and your industry. SIGN UP TODAY!
Save $200 Off Annual Membership or get
One Quarter Free!MEMBER TESTIMONIALS
the two obvious benefits of belonging towMABA are: 1) keeping up-to-date on indus-try events, challenges and technical changes,and 2) networking with industry shop ownersand vendors. the not-so-obvious benefit isthat we as shop owners can unify to make achange. Being a member assures each of usthat we are not ‘the only one’ dealing withthese issues. wMABA is the only associationfocused on making this industry better for thecollision shop owners and technicians. noother organization can make that claim. Mostof them just follow the money. Put yourmoney where it counts – join wMABA! - Bill Denny, Bill Denny’s Automotive, Inc., Havre de Grace, MD
wMABA keeps us in touch with what ishappening in our industry, from class actionlawsuits to pending legislation in our stateand the whole country. our membership helpsus remember that we are not the only onesfacing the discouraging burdens and issuesout there. it reminds us that if we all stick to-gether we can make a change for the better.their coverage of Partstrader, well before ithit home, was invaluable. they even went tothe State and tried to make it unlawful for in-surance companies to require it. they areworking hard for us, on things that all bodyshop owners care deeply about, but don’thave the time to stand up and fight.- Barbara Chase, Sisk Auto Body, Owings, MD
i joined wMABA the very first year iopened my shop. i was immediately embracedby both colleagues and mentors who pro-vided me the fellowship to know i wasn't theonly one facing the challenges before me,advice that provided clarity and confidence tomake the decisions that would guide mybusiness and a network that i could call onrepeatedly over the years i have been a mem-ber. wMABA's ability to educate the collisionrepair industry, speak on its behalf and lobbyfor issues that affect it has been - and is tothis day - the greatest value i have receivedfrom any association of which i have been amember.- Mark Boudreau, Spectrum Collision Center,Arlington, VA
15February 2015
16 February 2015
17February 2015
Longtime WMABA businessesstart a new journey.
NEWSLOCAL
Caliber JoinsForces withCraftsman,Pohanka
By JoEl gAuStEn
On December 31, Caliber Collision Cen-ters completed its acquisition of WMABAmainstay businesses Craftsman Auto Bodyand Pohanka Collision Centers, signaling theconsolidator’s official entry into the Marylandand Virginia markets.
Formed in 1997 and headquartered inLewisville, TX, Caliber Collision Centers is oneof the largest collision repair enterprises inAmerica, boasting more than 200 I-CAR GoldClass Professional-certified collision repaircenters across Arizona, California, Colorado,Florida, Nevada, New Mexico, North Carolina,Oklahoma and Texas. The company’s dealwith Craftsman and Pohanka will bring an ad-ditional 25 locations under the Caliber um-brella. Both Craftsman and Pohanka haveworked cooperatively on various strategic ini-tiatives for the past nine years.
“Our partnership with Craftsman AutoBody and Pohanka Collision Centers will in-crease Caliber’s network to 232 locations aswe continue to grow into the collision repairprovider of choice in every community weserve,” offered Mark Sanders, Caliber Colli-sion Centers’ president and COO.
Founded in 1919, Pohanka CollisionCenters has built a sizable business in theWMABA region with locations in Virginia(Alexandria, Arlington, Chantilly, Dumfries,Stafford and Fredericksburg) and Maryland(Clinton, Ocean City, Pocomoke City, CapitolHeights and Salisbury).
“We are thrilled to continue to work withCraftsman as we join together to help Calibergrow its network across the country,” offers
Chris Pohanka, owner/vice president of operations of Pohanka Collision Centers and a formerWMABA Board member. “This is a great opportunity for all of us.”
One of the Virginia auto community’s most revered institutions, Craftsman Auto Body wasfounded in 1956 and has been a member of the association since the 1960s. The third-gener-ation, multi-location company has built a solid reputation through supporting not only the colli-sion repair industry, but the motoring public as well thanks to its involvement in the NationalAuto Body Council’s Recycled Rides program. In 1999, WMABA created the Jerry Dalton Me-morial Education Fund as a tribute to the company’s legendary co-owner, who served on theWMABA Board for 25 consecutive years and was president from 1985 to 1987. CraftsmanAuto Body COO John Krauss has a long history on the WMABA Board of Directors, whileCraftsman CEO Paul Krauss received the Collision Industry Electronic Commerce Association(CIECA) Outstanding Leadership Award at the Collision Industry Conference in Las Vegas lastNovember.
“Our team is excited to be joining forces with Caliber Collision,” shares Paul Krauss. “Cal-iber has done an exceptional job of building a solid reputation for delivering customer choicecombined with industry-leading metrics. Just as important to us is the fact that they have a cul-ture that is compatible with the values and standards that are the backbone of our business.”
“This transaction represents an important strategic opportunity that provides for us a solidplatform in Virginia and Maryland with two high quality, industry-leading teams,” adds CaliberCollision Center CEO Steve Grimshaw. “Like many others in the industry, we have admiredCraftsman and Pohanka for many years. We are honored that they have agreed to partnerwith us as we work together to restore Virginia and Maryland customers to the rhythm of theirlives.”
More information on Caliber Collision Centers is available at www.calibercollision.com.H&D
18 February 2015
19February 2015
20 February 2015
In response to the National Highway Traffic Safety Administra-tion’s request for carmakers to implement a nationwide recall of theirvehicles that contain Takata airbags (“Airbag Controversy ExplodesInto Massive Recall,” H&D, January 2015), a number of manufactur-ers have stepped up with their solutions to the issue.
In early December, Honda became the first manufacturer toagree to expand its regional airbag recall nationwide. The au-tomaker’s decision to step up to the plate and add more cars beyondits original recall effort in high humidity regions (Alabama, California,Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina,Texas, Puerto Rico and the US Virgin Islands) came after months ofscrutiny over its experience with the Takata issue. As reported by theDetroit News on December 8, “Honda has confirmed four deaths - in-cluding one in Malaysia - and 46 injuries in the United States” linkedto Takata. On the same day, Honda announced that the followingmodels would be part of its national Safety Improvement Campaign:
With this expansion, a total of approximately 5.4 million Hondavehicles will be covered by the recall.
On December 11, Mazda issued a statement that it would insti-tute a nationwide Safety Improvement Campaign of 2004-2008model-year Mazda6 and RX-8 models equipped with certain Takataairbag inflators:
There are approximately 330,000 vehicles included in this Safety Im-provement Campaign in the United States. So far, Takata has testeda large number of inflators removed from Mazda vehicles, and NONEhave been found to be non-compliant at this time. One vehicle – a
2005 Mazda6 located in Florida – has been identified as having ex-perienced an abnormal driver’s-side airbag deployment.
On December 18, Reuters reported that Ford expanded the re-call of older-model Mustang cars that featured driver-side Takataairbags with inflators to include about 502,500 vehicles. This is in ad-dition to the approximately 55,000 Ford vehicles already recalled forpossible driver-side airbag defects. Previously, a December 4 CarAnd Driver update announced that Ford added passenger-sideairbags to the repair list of about 13,000 vehicles (2004-2005Rangers and 2005-2006 GTs) already involved in the regional Takatarecalls “originally sold, or ever registered, in Florida, Hawaii, PuertoRico and the US Virgin Islands.” The expanded recall also includeszip codes with high-humidity conditions in Georgia, Alabama, Missis-sippi, Louisiana, Texas, Guam, Saipan and American Samoa.
On December 19, Chrysler (FCA US LLC.) announced that itwould “replace driver’s-side airbag inflators in an estimated 3.3 mil-lion older-model vehicles worldwide in an expansion of the ongoingregional field action.” The manufacturer stressed that this decisionwas a precaution, not a response to a direct accident or fatalitycaused by a defective Takata airbag in their vehicles. The expansionaffects an estimated 2,890,785 vehicles across the US; 258,586 inCanada; 66,436 in Mexico and 99,030 outside the NAFTA region.Covered are certain 2004-2007 vehicles from the following modellines:
Three days after the Chrysler announcement, the New YorkTimes reported that BMW would replace driver-side airbags in ap-proximately 140,000 BMW 3 Series vehicles produced in the US be-tween January 2004 and August 2006. Previously, the automaker’srecall was limited to approximately 11,700 cars in Florida, Hawaii andPuerto Rico.
Hammer & Dolly will follow this story as it develops. H&D
AUTOMAKERSRESPONDTO AIRBAGRECALLDEMANDS
• 2001-2007honda Accordwith 4-cylinderengines
• 2001-2002honda Accordwith v6 engines
• 2001-2005 honda civic
• 2002-2006 honda cr-v
• 2003-2011 honda Element
• 2002-2004 honda odyssey
• 2003-2007 honda Pilot
• 2006 hondaridgeline
• 2003-2006Acura Mdx
• 2002-2003Acura tl
• 2002 Acura cl
Car companies take actionto protect consumers.
NEWSNATIONAL
• dodge ram 1500, 2500 and 3500 pickups• dodge ram 3500 chassis cabs• dodge durango and chrysler Aspen full-size Suvs• chrysler 300 and dodge charger full-size sedans• dodge Magnum full-size station wagons• Mitsubishi raider and dodge dakota small pickups
By JoEl gAuStEn
21February 2015
22 February 2015
23February 2015
of Louisiana consumers.” His concern for the safety of Louisiana drivers is exploredwithin the text of the suit:
Through the pressure and control they exert upon repair facilities, the practices ofState Farm and other insurers lead to the use of non-OEM parts in repairs, directlyaffecting the timing of airbag deployment so that the repaired vehicle no longermeets the manufacturer’s safety specifications.
State Farm and other insurers routinely refuse to pay for procedures necessary tomake complete repairs pursuant to the manufacturer guidelines and the procedurepages published by the estimating companies.
Caldwell also argues that State Farm and other carriers “routinely refuse to paycosts associated with OEM wheels and encourage repair facilities to recondition wheelsor use non-OEM replacement parts,” which goes against recommendations made bycarmakers:
Many automobile manufacturers have publicly stated that they do not approve ofany repairs to aluminum wheels that involve welding, bending, straightening, re-forming or adding new material, and that only those repairs to aluminum wheelswhich are strictly cosmetic are approved.
Filed in the spring of 2014, the Crawford’s suit alleges that State Farm, Allstate,GEICO, Progressive, Farmers, Liberty Mutual and Nationwide conspired to control thecost of automotive repairs and create artificial “prevailing” rates based on their DRPshops’ use of products by the industry’s three leading Information Providers (Audatex[AudaExplore], CCC or Mitchell), who have been named as conspirators. USAA, Travel-ers and American Family were also named as conspirators in the suit, but were notnamed as defendants. H&D
“Enough is enough!”If you have attended a national industry event
in recent years, you have inevitably heard this bat-tle cry during discussions regarding the collision re-pair community’s push against insurer abuse. At noother time in history was this mindset more evidentthan in the final months of 2014, which saw a multi-tude of new lawsuits against carriers spring up invarious places across the country.
According to reports by CollisionWeek Online,antitrust lawsuits against a host of insurers wererecently filed by collision repair facilities in Illinois,Alabama, Pennsylvania, California, Ohio, Missouri,Kentucky, Oregon and Washington. A recently filedsuit in Michigan (Rodenhouse Body Shop, Inc. et alv. State Farm Mutual Automobile Insurance Com-pany et al.) names 12 shops as plaintiffs and morethan 30 insurers as defendants, while a case filedin Arizona in late October (Legends Collision LLC etal v. State Farm Mutual Automobile Insurance Com-pany et al.) involves six collision repair businessesand 20-plus insurers.
In December, a suit filed against State Farmby Louisiana Attorney General James D. “Buddy”Caldwell (“Lawsuits & Lost Faith: State Farm Facesa Bitter Industry,” H&D, October 2014) and a RICOsuit filed by Crawford’s Auto Center of Downing-town, PA (“RICO Lawsuit Targets Top Auto Insur-ers,” H&D, July 2014) were combined with currentmultidistrict litigation (MDL) being heard in the USDistrict Court for the Middle District of Florida.Crawford’s had opposed the consolidation of itscase in this manner (“RICO Suit Plaintiff RejectsJoining Antitrust Actions,” H&D, September 2014),as did the State of Louisiana.
A press release issued by Attorney GeneralCaldwell regarding his case accuses the nation’stop auto insurer of engaging “in a pattern of unfairand fraudulent business practices aimed at control-ling the auto repair industry and forcing unsafe re-pairs on vehicles without the knowledge or consent
LawsuitsAgainstInsurers Gain Momentum
Various states take theirissues to the courts.
NEWSNATIONAL
By JoEl gAuStEn
24 February 2015
The degrading climate in the industry is such that there is a disparity between repairers’ viewpoints on insurer relations. I think we’ll see continued croppings oflawsuits across the country from those who find their situation to be unfair or,more pointedly, unjust.
- Jordan Hendler
Executive Director’s Thoughts
25February 2015
26 February 2015
27February 2015
NEW COMMITTEESFOR THE NEW YEAR
Mr. Bennett has been a government relations consultantwith the Law Offices of Alexander & Cleaver for the pasttwo years. Previously, he worked as a legislative aide toMD Senate President Mike Miller, where he handledbudget and taxation issues. To contact our office, pleasecall (410) 974-9000.
business issues, including insurance policy and consumer protection. The Finance Committeewill continue to be chaired by Mac Middleton (D-Charles), who has served in this role since2002. The four new members to the committee are all incumbent senators. They are JoanneC. Benson (D-Prince George’s), Steve Hershey (R-Upper Shore), J.B. Jennings (R-Balti-more Co., Harford) and Ed Reilly (R-Anne Arundel).
The Economic Matters Committee will continue to be chaired by Dereck Davis (D-PrinceGeorge’s). Of the 24 members of this committee, 15 are new to the committee. Six are begin-ning their first term in the House. Sally Jameson (D-Charles) will serve as the new vice chair.She served on this committee since 2003. One more appointment has yet to be made to thiscommittee, with Kelly Schulz (R-Frederick) being chosen by Governor Larry Hogan to leadthe Department of Labor, Licensing and Regulation. Given its new designation to includetransportation issues, the Environment & Transportation Committee will be of greaterimportance to WMABA.
Whether you’re in Maryland or Virginia, it is always important to keep diligent watch forany legislation that could affect business, and it is of greater importance to become activelyengaged in the process when these issues arise. The first step is to find out who yourrepresentatives are and make sure they know that you can be a real asset and a major sourceof information.H&D
As Maryland begins the 2015 legislativesession, the look of the General Assembly isquite different than the way that it looked ayear ago. More than 60 new legislators wereelected for the first time in November. With somany new faces across the General Assem-bly, both the Senate President and theSpeaker of the House were faced with thedaunting task of assigning the members oftheir chambers to one of the 10 legislativestanding committees.
Several committees saw a change inleadership, with either a new chair or vicechair having been named to lead. On theSenate side, the most notable change is theappointment of Bobby Zirkin (D-BaltimoreCounty) as the chair of the Judicial Proceed-ings Committee. Senator Zirkin replacesBrian Frosh, who was elected as Maryland’sattorney general. In addition, Senator RichMadaleno (D-Montgomery) was named thevice chair of the Budget & Taxation Commit-tee.
On the House side, Maggie McIntosh(D-Baltimore City), who formerly chaired theEnvironmental Matters Committee, was se-lected as the chair of the Appropriations Com-mittee. Replacing Delegate McIntosh as chairof her former committee will be Kumar Barve(D-Montgomery). Delegate Barve is not theonly major change to the House Environmen-tal Matters Committee. The committee wasrenamed the Environment & TransportationCommittee, with transportation policy issuesbeing consolidated within the committee’s ju-risdiction. Dana Stein (D-Baltimore County)will serve as the vice chair of this committee.
From WMABA’s perspective, two of themore important committees are the HouseEconomic Matters Committee and the SenateFinance Committee, given their oversight of
What’s happening at the State House, inyour industry and everywhere in between.
PERSPECTIVELEGAL
28 February 2015
By tylEr BEnnEttGovernment Relations Consultant, The Law Offices of Alexander & Cleaver
The political movements in Virginia and Maryland this recent election lend to community efforts toincite “change.” From either Party, it is refreshing to see the renewed vigor in electing people fromgrassroots efforts and having new faces and different perspectives. WMABA will closely watch our re-gion's legislative sessions and continue to represent the interests of repairers.
- Jordan Hendler
Executive Director’s Thoughts
29February 2015
30 February 2015
31February 2015
February 2015
As reported in the January issue ofHammer & Dolly, Tidewater Commu-nity College Regional Automotive Cen-
ter Director Beno Rubin received the ByrlShoemaker/Automotive Service Excellence(ASE) Industry Education Alliance Instructor ofthe Year Award (sponsored by the NationalAutomotive Technicians Education Foundation[NATEF]) on November 19. As gracious as hewas to accept the award, in his opinion, hissuccess is due largely in part to an importantinstructor in his program, Abe Sells.
In 1988, Sells attended the Belmont Ca-reer Center vocational school. Soon after hisgraduation, he got a job at a dealership as acombination man doing collision repair and re-finish work. In the '90s, he got involved with aChevy dealership as a Master Certified Tech-nician, where he stayed for about 15 years.During this time, he participated in training forPPG and received his Gold-level certification.When he moved to Virginia from Ohio, he gotinvolved with collision work and started work-ing with I-CAR. Two years ago, he became aninstructor to educate technicians on OEMstandards, and he is a certified instructor for I-CAR in both aluminum and steel welding. Cur-rently, he teaches automotive repair forTidewater Community College. With such animpressive résumé, it is no wonder why his in-dustry peers look up to him in the way thatthey do.
“Abe is extremely passionate about thisindustry and about training future technicians,”says Rubin. “He’s the one who has been help-ing us develop our entire program. His enthu-siasm is impressive, and he’s well respectedby both the students and the industry.”
“You’ve got to love what you do to begood at it,” Sells says. “I take a lot of pride inwhat I do. I’ve always been the person whowants to help other people.”
Sells is employed at First Team Toyota inChesapeake, and it is through this opportunitythat he was able to secure a hands-on teach-ing environment for the students. They utilizea classroom at the dealership, as they’re cur-rently in the process of getting one on cam-pus. He attributes his success to the respecthe receives for his knowledge of the trade.
“When you’re an I-CAR instructor, youhave the OEMs’ knowledge on your side,” hesays. “People know you know what you’retalking about.”
Not surprisingly, he is also very respect-ful of his peers.
“The people I'm around and work withare some of the most influential people in my
life," he shares. "I've always had good peoplearound me; we’ve learned from each other.”
One person in particular who helpedshape Sells' career path was Mark Burkhart,who taught Sells how to perform collision re-pair when he was fresh out of vocationalschool.
“He’s the one who really showed me theropes,” Sells says. “I always used him as areference when I was applying for new jobs.”
With all of the changes in technology andinnovation on today’s vehicles, the future ofthe automotive repair industry can seemmurky. Abe Sells is among those who believethat education must continue as the industryevolves. As American psychologist JohnDewey once said, “If we teach today’s stu-dents as we taught yesterday’s, we rob themof tomorrow.” H&D
THE MONTHTECHNICIAN OF
ABESELLS
By JAcquElyn BAuMAnIf you would like to nominate someone asTechnician of the Month, please contactHammer & Dolly Editor Joel Gausten at
Hammer & Dolly chats with theWMABA community’s best and brightest.
32
The people I'm around and work with are some of the most influentialpeople in my life. I’ve always had good people around me; we’velearned from each other.
“”
tidewater community collegeoffers an Associate of AppliedScience degree in Automotivetechnology and six differentcareer Studies certificates in various aspects of automotiveand collision repair.
33February 2015
FEATURETECHNICAL
34 February 2015
We are hearing all sorts of confusionover information provided about equipment,parts issues and a lot of other stuff. We neverseem to understand why so many people inthe business - many of whom are hugely suc-cessful - fall prey to the rumors and let othersoutside of their business tell them how to runit. The funniest thing we heard was from theDRP facility owners who complained aboutsteering more than the non-DRP facility own-ers. We asked, “What has you so upset?”They all answered the same: “The programswe are not on. We are losing a lot of businessdue to steering.” We then asked, “But isn’tthat how you get business from the insurersyou are working with?” “Yeah,” they replied.“But that’s different.” Well, that conversationgave us an idea for an article.
SteeringSteering is the direction or redirection of
customers to a particular repair facility. This,as many of us know, is illegal in most statesand is next to impossible to prove. One mainreason is that most of the repair facilitieshave no audio recordings and no corroborat-ing witness, and the other main reason is thefacilities allow this to happen. How? That isan easy one. Most of the facilities allow thecustomer to go home and call in the claim,which allows the call center representative toread off their word track to get the customerinto one of their controlled DRP facilities.Moreover, even in the case where the shophas the customer call from the facility, mostshop personnel do not know the law and howto handle the call-in center representatives.Losing a customer to steering is 90 percentthe fault of the shop - not the insurancecompanies. The insurance companies are
only doing what they need to do, while youare not. Setting up SOPs and word tracks arenot hard, but the change to using them mustbe installed. Take control of your business.
Parts IssuesParts usage, OEM, aftermarket, used,
procurement… The topics go on and on.Parts are a main component in the repair of avehicle, as almost every job will require themin some way. Over the past few years, wehave heard about the online parts orderingsystem required for DRPs on some of the in-surance programs. Well, parts should not bean issue for the following reasons (which areall directed at the facility owners):
1. Most of the OEMs have position state-ments against using aftermarket or usedparts. Being forced to use aftermarket andused parts - even though the OEM says no- is solely your fault. In many cases, the re-pairs may be classified as inferior or un-safe due to your choice of parts usage.
2. Being required to order parts from anonline system is your own choice, notsomeone else’s. Nobody is forcing you todo anything except you. You decided to bepart of a program and you agreed to thoseterms.
3. Employing used structural non-boltedcomponents is not only stupid, it is unethi-cal and, in some cases, potentially criminal(negligence).
WHERE IT ALL WENT WRONG:STEERING, PARTS ISSUES, LABOR RATES,TRAINING, EQUIPMENT AND MORE
Nuts and bolts, tips and tricksfrom our resident industry experts.
35February 2015
By lArry MontAnEz iii, cdA & JEFF lAngE, PE
Labor RatesIf you are not happy with what you are
getting paid, then change it. One of the biggestmisconceptions in the industry is that insur-ance companies pay repair facilities and havea say in how vehicles get repaired. Insured in-dividuals and claimants receive money from in-surance companies to reimburse themselvesfor the amount charged by the repair facility.The repair facility is solely liable for the repairs.Training and equipment investments haverisen dramatically over the past few years, andLabor Rates have remained stagnant in thesame time period. Another mistake many repairfacilities make is not knowing their true cost ofbusiness and what their hourly rate needs tobe to cover their costs. We have seen in someareas a $20-$25 swing in Labor Rates be-tween insurance companies. For example, inone area we know of, the lowest amount an in-surer is attempting to pay is $44 per hour andthe highest is $65 from another insurer. That isa $21 swing or 32.4-percent difference. That isa lot of money that you potentially are leavingon the table. We recommend talking to youraccountant about what you need to charge topay your overhead and make a profit. You maybe surprised at the amount they tell you.
Training Training has been imperative for the past
eight years, and each year the importance in-creases. We are in an era of the most techno-logically advanced vehicles, requiring the mostadvanced materials and equipment we haveever seen; all the while, insurance companiesare trying to force unrealistic repair and cycletimes to keep rental costs down. Many repairfacilities do not want to waste money on train-ing their employees, and technicians don’twant to train because no one will pay them.Both entities complain they don’t have the timeto train, and insurers will not pay for the proce-dures anyway, so why bother? This is themajor reason we are seeing a rise in improperrepairs and post-repair total losses. A certainamount of training should be required to simplyapply for a job. We suggest that I-CAR create apackage deal on some of their online classesthat techs must take prior to applying for a job.Facility owners should then enforce a basicamount of training to work in the industry. Facil-
ity owners must raise the bar and hold theiremployees - and themselves - accountable.
EquipmentDuring many visits to repair facilities
across the country, we feel like we are in anepisode of American Pickers. Many of theshops are like walking into a time warp back tothe 1980s, because most of the equipment wesee belongs in the Smithsonian Museum ofAmerican Collision Repair History. In a recentarticle, we saw some scary survey results.Some of the results are as follows:
30 percent do not train at all.9 percent do not have an electronic
estimating system.12 percent do not use OEM repair
information.11 percent do not own a frame rack.47 percent do not own a three-dimen-
sional measuring system.45 percent do not own a resistance
welder.
How can you repair vehicles with nomeasuring equipment, frame equipment or aresistance welder? Many repair facilities arestill trying to structurally repair vehicles byanchoring the vehicle by the rocker panelmating flanges. Forget the German vehicles;look at some of the Dodge and Jeep automo-biles that say in their repair information thattheir pinch welds are not strong enough to holdthose vehicles during structural realignment, asthe mating flanges will fail. Those select vehi-cles, like the European and German vehicles,require six- to eight-point anchoring.
ProceduresEvery OEM (except Hyundai and Kia) of-
fers repair procedures. And starting with themodel year 2015, Hyundai and Kia will offer re-pair information for their vehicles, too. TheOEMs produce repair information due to thecomplexities of the replacement processes andsubstrates they are using. All of this is done toensure safe, proper repairs. Not following theOEM repair procedures could cause the vehi-cle not to react in the manner in which it wasdesigned in a subsequent collision event.
Ignoring OEM procedures could cause a shopowner and/or technician to be held liable forany injuries from a collision event. If an insurerrefuses to pay for a procedure or follow anOEM position, then you as the shop ownermust take action to ensure those OEM require-ments are followed. You can never say, “Theydidn’t pay, so I didn’t do it.” Remember that in-surance companies never have a say in therepair process. Do you have a say in howmuch coverage is offered, or how muchpremium is charged?
We implore you as industry owners, tech-nicians and leaders to take control of what youactually have control over: Your business andhow it operates. Please, never lose sight of themain reason you are in the collision repairbusiness - to ensure the consumer/vehicleowner and any occupants who are in a vehiclethat it was repaired in a safe and proper man-ner to make sure it will react the way it was de-signed to in a subsequent collision event.
We hope this article has helped the in-dustry to better understand what went wrong,who is at fault and who can change it.
Feel free to contact us if you have anyquestions. H&D
Larry Montanez III, CDA is co-owner of P&L Consultants with Peter Pratti, Jr. P&L Consultantsworks with collision repair shops on estimating,production and proper repair procedures. P&L con-ducts repair workshops on MIG & resistance weld-ing, measuring for estimating and advancedestimating skills. P&L also conducts investigationsfor insurers and repair shops for improper repairs,collision repairability and estimating issues. P&Lcan be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell), (718) 646-2733(fax) or via email at [email protected]. The P&Lwebsite is www.PnLEstimology.com.
Jeff Lange, PE is president of Lange TechnicalServices, Ltd. of Deer Park, NY www.LangeTech.net. Jeff is a Licensed New York State ProfessionalEngineer who specializes in investigating vehicleand component failures. Lange Technical Services,Ltd. is an investigative engineering firm performingforensic vehicle examinations and analysis for acci-dent reconstruction, products liability and insuranceissues. Jeff can be reached at (631) 667-6128 or byemail at [email protected].
36 February 2015
Larry and Jeff have an excellent call-to-actionplan in this article. As an executive director, I geta lot of calls from those shops participating andbelieving in the proper procedures, practices andequipment to return the vehicle to their cus-tomer safely. The growing chasm between shopphilosophies is startling and increasing at analarming rate. Soon, it will be blown wide open.
- Jordan Hendler
Executive Director’s Thoughts
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37February 2015
38 February 2015
39February 2015
last month, Hammer & Dolly revealed the first part of the results of wMABA’s latest labor rate Survey. this month, we continue the discussion by
presenting the rest of this extensive undertaking. As evident in thefollowing pages, the industry faces a difficult road ahead in
2015.
A real-world look at the financialhealth of the industry.
STORYCOVER
By JoEl gAuStEn
FILLING IN THE BLANK:INSIDE WMABA’S LABOR RATE SURVEY - PART 2*
“The majority of
surveyed repairers take
issue with insurers’
interference of repair
methods, the overall process
and the systematic
reduction of
reimbursement
rates.”
*This article is forinformational purposesonly and should not be
considered legalor business
advice.
When reviewing these Survey results, it is ap-parent that the vast majority of respondents havecome to the same conclusion when it comes to re-quired operations performed on the shop floor. Asshown in the table to the left, there is not a singleoperation that falls below 88 percent.
“The results of the survey were significantlyconclusive,” explains WMABA Executive DirectorJordan Hendler. “Nearly all operations received amore than 90 percent necessity response, and asimilarly significant percentage of respondentsidentified that they currently perform these neces-sary operations. What this demonstrates is that the‘You are the only one’ defense that some carrierswould like the market to believe may not be soaccurate.”
Elsewhere in the results, it is clear that the in-surance industry continues to have considerablecontrol over the collision repair process. When look-ing at the results in the blue box on the oppositepage, it is impossible to ignore just how strong thisoutside party’s influence has become.
“These results speak for themselves,” Hendlersays. “The majority of surveyed repairers take issuewith insurers’ interference of repair methods, theoverall process and the systematic reduction of re-imbursement rates. There are issues with parts,whether it is a byproduct of the parts themselves, orthe manner in which insurers require – or imply –the measurement of the repairer utilizing them. Thestraightforwardness of many of the results hereshows that our industry has overwhelming opinionson the issues presented, but it’s important to re-member that this doesn’t address the possible solu-tions. This Survey is focused on the currentconditions. In today’s marketplace, it is becomingnearly impossible to believe that there is a wideenough capacity to reinvest in training, tooling andequipment to fix the consumer’s vehicles properly.”
Interestingly, 98 percent of respondents notedthat inadequate or poorly written estimates by insur-ance company representatives delay the repairprocess and cost the shop time and money whilethey rectify mistakes. This leads to an intriguingquestion: Why should shops incur costs if thesewere not their poorly written estimates to beginwith? What should the insurer’s responsibility be inthese instances? In Hendler’s mind, the most obvi-ous answer to the problem of poorly written insur-ance estimates is to not accept them. If that turnsout not to be a viable solution to actually fix theproblem, the “glass half full” approach would be tobetter educate the carriers.
“Take the time to show the adjuster what theymissed, how to estimate it properly and how to do itmore completely,” she advises. “It must be done ina way that is positive and helpful, rather than com-bative. Give them the tips you know, and show
“tint” the color 90.63% 94.53%
“Materials” to tint the color 90.16% 87.70%
“color, sand and buff” and/or denibsurface blemishes 93.02% 90.70%
“Materials” needed to denib or buff a vehicle 91.60% 85.71%
to remove tape or painted stripes before refinishing 94.62% 91.54%
Feather, fill, block and prime on repaired panels 92.74% 87.90%
Feather, fill, block and prime on welded panels 88.03% 85.47%
“Mark-up” or “admin” on sublet (towing, upholstery,mechanical, pdr, etc.) 94.66% 87.79%
disable and enable “interlock” devices to move vehicles 89.72% 85.98%
“clips and fasteners” needed in the repair process 92.42% 93.18%
“Bagging” vehicle to “prime” and for “final refinish” 93.02% 90.70%
“Bag” opening to “prime” and for “final refinish” 92.56% 87.60%
“Bonding materials” in the repair process 90.00% 93.08%
“undercoating,” installation and removal 92.06% 92.86%
“Structural foam,” installation and/or removal 92.91% 92.13%
“check and test seat belts” being used in the accident 88.39% 84.82%
“Pressure test” cooling systems after front-end damage 89.91% 81.65%
“Prep raw plastic” when recommend by paint supplier 92.37% 94.66%
“Set up and pull” to access repairs 93.89% 88.55%
“weld thru primer” and/or “cavity wax” when needed 93.94% 93.18%
replacement of information labels, parts and labor 92.37% 93.13%
removal and replacement of protective coatings 92.50% 85.00%
reset memory functions (e.g., radio codes, sensors, etc.) 91.06% 88.62%
“Jig” rental when recommended by vehicle manufacturer 88.06% 56.72%
repairing “weld burn, including grinding and prepping” 90.60% 88.89%
DO YOU BELIEVETHIS IS A REQUIRED
OPERATION?
DO YOUCURRENTLY
PERFORM THISOPERATION?
RESPONDENTS SHARETHEIR VIEWS ONSTANDARD PROCEDURES
continued on page 43
41February 2015
do you believe insurers rate you on the use ofalternative parts to oEM, such as used or aftermarket? 89.84% 10.16%
do you feel many insurers try to control or insertthemselves into the repair process, including selectionof parts and repair methods used? 96.09% 3.91%
do you have an insurer who requires you to order partsfrom a particular vendor or through a particular onlineprocurement system? 62.50% 37.50%
do you believe insurer reimbursement rates are fair tosupport adequate profit for continuing education,certifications and new equipment? 9.68% 90.32%
would [or does] ordering parts or materials through arequired third-party bidding system increase your cycletime and customer dissatisfaction? 71.07% 28.93%
have you been told “you are the only one” who charges forwhat you feel is a legitimate, reasonable and necessaryoperation? 86.51% 13.49%
do appraiser(s) tell you “we can’t pay for that because it isagainst insurance company policy,” even though you knew itwas a fair, reasonable and necessary item? 96.06% 3.94%
do you feel that after an insurer is notified, that two business daysis an adequate time frame for an insurer to come to your shop toinspect, appraise the damage and provide an estimate? 86.61% 13.39%
is it your experience that a good portion of insurance companyrepresentatives will intentionally write “low ball” estimates thatomit obvious visible damage? 89.06% 10.94%
do inadequate or poorly written estimates by insurancecompany representatives delay the repair process and costyour shop time and money while you rectify mistakes? 98.44% 1.56%
do you feel appraisers intentionally omit vital processes inhopes the shop will not correct and amend the mistake, givingthe insurer unfair financial gain? 90.55% 9.45%
have you feared retribution from insurers if you charged fora job performed that you feel is fair, reasonable and necessary,but they may not approve of? 66.67% 33.33%
do you feel insurers are using their “power,” togetherwith a weak economy, in an attempt to coerce shops inaccepting less than a fair amount? 88.19% 11.81%
have you experienced an insurer(s) who has declared avehicle a total loss when you felt the vehicle was an easy,safe repair and the vehicle owner wanted it repaired, butdid so because the insurer got a high salvage value? 72.00% 28.00%
do you experience insurers retaining payment, but tell youthat you are “holding the car hostage” when they had morethan adequate time to issue payment? 68.50% 31.50%
do you feel many insurers’ initial estimates lack proper repairprocedures necessary to fix the car to pre-accident condition? 91.34% 8.66%
HOW DO OUR SURVEY PARTICIPANTS FEELABOUT INSURER/SHOP RELATIONS?"
SURVEY TAKERS REVIEW A NUMBEROF QUESTIONS THAT RELATE TOTHEIR DAILY BUSINESS.
YES NO
YES NO
is it your experience that blending a panel takesas long, or longer, than refinishing a newundamaged panel? 94.49% 5.51%
does it take more skill and materials to “blend”a panel versus refinish a full panel? 90.55% 9.45%
is “clean up” time necessary on most “lkq” orused parts? 98.44% 1.56%
can you blend or melt clear coat within a paneland give a lifetime warranty? 8.73% 91.27%
is it necessary to pre-clean most vehicles priorto entering the shop? 67.72% 32.28%
given the advancements in system compatibility,should you have the freedom of choice for yourestimating system provider? 99.21% 0.79%
do used structural parts (e.g., quarter panel, hingepillar, rocker panel, radiator support and apron orframe rails) take more “trim” time than new parts? 99.21% 0.79%
do you feel that modern vehicles (with boron steel,structural aluminum, multiple airbags, collisionavoidance systems, laser welds, etc.) are moredifficult to work on than older vehicles without those similar characteristics? 96.85% 3.15%
do you feel colors on newer vehicles are more difficult to match than those 5-10 years older? 77.78% 22.22%
do rental car companies unnecessarily contactyou about the status of vehicle repairs, requestingnumerous status reports and completion dates? 73.23% 26.77%
would you prefer an itemized calculator formaterials based on a computer software program(e.g., Paintex, PMc logic, etc.) versuscompensation based on current random multipliers using an hourly rate? 73.39% 26.61%
have you been able to provide across-the-boardincreases in the pay and benefits of youremployees in the past five (5) years? 24.80% 75.20%
“The stark reality is that thetechnology will tattle
on them if they didn’t fix itright. Things long hidden will
leak out as time goes on.”
42 February 2015
Yes, fully paid Yes, partially paid NoHealth Insurance 11.90% 61.11% 26.98%Dental Insurance 6.40% 40.80% 52.80%Vision Insurance 7.20% 35.20% 57.60%Long-term Disability 2.42% 18.55% 79.03%Life Insurance 15.32% 16.94% 67.74%Paid sick leave (after a set period) 40.32% 22.58% 37.10%Paid vacation (after a set period) 78.57% 15.08% 6.35%Personal leave (after a set period) 30.65% 20.97% 48.39%401K or retirement program 18.40% 28.80% 52.80%Performance Bonus 34.13% 15.08% 50.79%Yearly cost of living increase(s) 2.42% 5.65% 91.94%
WHICH BENEFITS DO RESPONDING BUSINESS OWNERS PAY FOR?
WHAT ARE YOUR THOUGHTS ONTHE SURVEY RESULTS?
DO THEY REPRESENT WHAT’S GOING ONAT YOUR BUSINESS?
Let us know what you think. Contact WMABA Executive Director JordanHendler at (804) 789-9649 / jordanhendler@ wmaba.com and/or
Hammer & Dolly Editor Joel Gausten at(973) 600-9288/[email protected].
them more about the P-Pages. It can be anopportunity to improve the relationship and theefficiency of both parties.”
Obviously, the data revealed in this sec-tion has a tremendous impact on the benefitsthat auto body business owners are able toprovide to their employees, as evident in theresults displayed in the table on the oppositepage.
“Many other industries have experiencedthe same issue, with the rising costs of health-care being a major factor,” offers Hendler. “However, the stagnancy of the rates in the marketplace and the reduction of reimburse-ment lends to the slow degradation that we’reseeing over time.”
Hendler adds that if we’re going to talkabout fair compensation, perhaps the conceptof joining a “Professionals” association - likenearly 100 percent of doctors and lawyers -deserves consideration by more of our indus-try. If there was a way to differentiate thosewho subscribe to the ethical business prac-tices (similar to the WMABA membershipcode), then it may lend to improvement in theoverall customer experience and vehiclesafety.
“You can all send me your mail on this,and tell me what you think,” she suggests.“Those repairers who are future-oriented andcommitted to education, safety and quality arelike a ‘Professional’ shop that attracts morequality people. Those who are trying to ‘makeit up in volume’ aren’t going to be successfulin the long term with the advancements in ve-hicle technology. The stark reality is that thetechnology will tattle on them if they didn’t fix itright. Things long hidden will leak out as timegoes on. Our industry is going to have a rudeawakening.”
Already a bumpy road, the currentWMABA Survey concludes with a somewhatlukewarm summary of the current state of theindustry. In answer to the question, “Howwould you describe the general economicstate of the collision repair industry on ascale?” 88 percent of respondents felt that theindustry economic state was “Average” or“Below,” leaving only seven percent at “PrettyGood” and five percent at “Very Strong.” Fifty-eight percent believe that the industry is“Poor” or “Depressed.” If you wanted to have avery small glimpse of how your trade is doing,this is it.
“It seems like just a simple question, butit does speak volumes as to the current stateand future for the business owners and techni-cians,” Hendler says. “How can we attractgood people to a repair industry that believesit is in disrepair?” H&D
43February 2015
An auto celebrity hits thenation’s leading regional show.
SPOTLIGHTINDUSTRY
44 February 2015
With the Alliance of Automotive Service Providers of New Jer-sey (AASP/NJ)’s flagship event, the NORTHEAST 2015 AutomotiveServices Show, just a month away, the industry is abuzz with excite-ment. The association is pleased to announce that Platinum Spon-sor BASF will be bringing Ryan Friedlinghaus, CEO of West CoastCustoms, Inc., as a celebrity guest to the show.
BASF is a repeat sponsor of NORTHEAST, the largest regionalevent of its kind in the country.
“We’ve had a long history with the show and have been in-volved with it since the very beginning,” says BASF Marketing Serv-ices Manager Tina Nelles. “It gives us the opportunity to interactwith our customers, listen for their feedback and find new ways tomeet the important needs of today’s collision repair facilities.”
“The celebrity guests are always very popular,” says AASP/NJPresident Jeff McDowell. “They’re a huge draw for a lot of atten-dees. We’re very excited to welcome Ryan to our show; he under-stands what it’s like to be part of this industry and people can’t waitto meet him.”
Friedlinghaus founded West Coast Customs in 1993 on justhard work and a $5,000 loan from his grandfather. He grew thebusiness from a one-stall location to a global leader. Ryan is wellknown in the industry for his unique creativity, exceptional work andattention to detail. In the past, his talents have been featured onnetworks such as MTV, TLC, Discovery HD and Velocity. His currentshow, West Coast Customs, airs Sunday nights at 10pm EST onFox Sports 2.
Friedlinghaus will appear at the show on Saturday, March 21.At the event, he will be promoting BASF’s R-M brand paint, theofficial paint of West Coast Customs.
“I’m excited to be a part of the NORTHEAST show on behalf ofBASF and the R-M® brand,” says Friedlinghaus. “I understand thedaily struggles of owning, running and growing an automotive busi-ness. For me, this show is unique, in that I get to meet with repairprofessionals that share my same passion and hear their stories.”
“The BASF booth at NORTHEAST is where the excitementtakes place,” adds Nelles. “In addition to Ryan, we will be
highlighting our R-M brand and we will have staff to highlight howBASF tools and services can make shops more profitable and effi-cient.”
NORTHEAST 2015 will be held on March 20-22. As usual, itwill be held at the Meadowlands Exposition Center in Secaucus –just five miles from Manhattan and surrounded by over 40 restau-rants, movie theaters and retail shops. For those traveling from faraway (as the show has welcomed guests in the past from aroundthe world), there is no shortage of entertainment inside or outside ofthe show. This is not an event to miss. Online free pre-registrationfor NORTHEAST is currently open at www.aaspnjnortheast.com.
H&D
Ryan Friedlinghausto Appear at NORTHEAST® 2015
For more information on NORTHEAST, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services ShowYouTube page (www.youtube.com/user/AASPNJNORTHEAST) or on Twitter @AASPNJNORTHEAST / #NORTHEAST2015. For more information on AASP/NJ, please visit www.aaspnj.org.
Now it’s 4:30pm, and we have a 2015 Honda with a new bumper cover, a repaired fender anda replaced headlight. Guess what? The vehicle didn’t recognize the new headlight and set a warn-ing light. The headlight had to be programmed to the vehicle. We’re not even talking about an inte-grated headlight - just a plain-Jane lamp. All of this got me to wake up and realize that we need toget our stuff together here.
As more and more technology comes our way, we struggle to keep up. This is just an every-day part of our business that will continue to grow. If you are not training your techs and doing thenecessary research on required repairs, you’re going to find yourself in more of a pickle than a bro-ken promise or missed delivery date. With vehicles equipped with sonar, blindspot technology,lane-keeping capabilities, etc., you better get on your “A” game. If you’re not sure about it, find out.If you’re still not sure, don’t do anything to the car until you are. In the coming years, the shops thattrain their techs and keep up with the technology will be the ones that are going to succeed. Don’twait until a Friday afternoon to find out what you don’t know you don’t know. H&D
WHAT YOUDON’T KNOW
On a recent Friday afternoon, I real-ized that you don’t know what you don’tknow. I consider myself to be prettysharp when it comes to collision repairtechnology, but boy, did I get caught offguard.
It was 3pm, and we had several ve-hicles that were promised for delivery.The first was a 2014 Altima that had allthe bells and whistles. We replaced thedecklid and back-up camera. It was ablack car, so we were able to paint thedecklid loose and reassemble it quickly.We started the car...and now we had adash full of warning lamps. After a littleresearch, we discovered that the back-up camera had to be calibrated. Thiswas no real biggie since we were lo-cated inside a Nissan dealer. Or so Ithought.
Because this is new technology, ourservice department had never done onebefore. What we hoped would be a quick10-minute fix turned into three days be-cause the procedure required a perfectlylevel floor, correct lighting and targets tobe placed within millimeters of tolerance.It was a learning experience, but we fi-nally got it done at the expense of a bro-ken promise and missed delivery date.
MESSAGEPRESIDENT’S don Beaver
(443) 539-4200 ext. [email protected]
46 February 2015
IN MEMORIAM: JEFFREY L. GIBSONOn January 8, theWMABA communitylost a gifted techni-cian and good friend
with the passing of Jeffrey L. Gibsonat the age of 50.
“Jeff was an exceptional technician,” saysLaura Gay, owner of Maryland-based Fort Washing-ton Auto Body and Sullivan’s Auto Body, who workedwith Gibson from 2006 to 2013. “Every car he re-paired, no matter the size of the repair or the moneyhe made on it, was done 110 percent.”
Gay, who knew Gibson for more than twodecades, remembers her friend and past employeeas “the life of the party,” whose generosity and kind-ness shone through his hard exterior.
“He had a heart the size of Kansas and woulddo anything for anyone at any time,” she says. “He
could be stubborn as a mule at times, but he wouldgive his last dollar to you if he knew you needed it.He had a beautiful Harley that he was very proud of,and he loved his faithful dog, Blue.”
Gibson is survived by his girlfriend, Cynthia,and his mother, brother and sister. His father,Whitey, also a very good body technician, pre-ceded him in death. WMABA and Hammer & Dollyoffer Jeffrey’s family and friends our deepest condolences. H&D
47February 2015
48 February 2015
We’ve all heard the rallying cry of the Alu-minum Revolution for years. Given Ford’s re-cent announcement of an all-aluminum bodyfor the 2015 F-150 (the number-one sellingvehicle worldwide), it appears to have finallyarrived. The reality is that it began in foreigncars and has progressed in the forms of hoodsand decklids. Car manufacturers have beenmaking components out of aluminum for yearswithout much notice from repair shops; a habitof replacing rather than repairing had provenmore cost-effective. However, the latest edi-tion of Ford’s F-150 demands our considera-tion for an investment in the latest aluminumrepair technologies.
The decision to update your systems andequipment may give you pause, especially ifyou are under the impression that seriousplayers must show up to the table with at least$35,000 in hand. While not an unreasonableestimate for a major overhaul, many shopowners will be able to upgrade for far less.Whether you’re ready to jump in headfirst orabout to bail completely, if you’re at all curiousabout the F-150 program, here is the equip-ment you will need to be fully up to spec*:
Toolbox with tools specifically put togetherby Ford for the truck. Rivet gun capable of installing the rivets
the truck uses. (Most of the rivets do not gointo a pre-drilled hole in the panels. Theyare pressed in and clinch the metal togetherwithout perforating the back panel.) Inverter pulse MIG welder for aluminum.
(No, your spool gun won’t work.) Aluminum dent repair station. Wet-mix vacuum system. (Collects dust at
the source and mixes it with water, eliminat-ing cross contamination and preventingfires. [Aluminum dust is flammable.])
*Note: Some of these pieces can only be purchased fromparticular manufacturers.
For those of you without the space, re-sources or diehard certainty to dedicate afull stall but who are still looking to get in thegame,I would suggest investing in an
aluminum dent repair station at minimum andpossibly an inverter pulse MIG welder as well. While searching for a reliable vendor, it is im-portant to keep in mind that there are plenty ofreputable distributors, but also an equal num-ber of wannabes – especially online. Anyoneworth their salt in the aluminum business canarrange an in-shop demo and supply a reli-able, competitively priced product. Also, theycan dedicate the time for necessary trainingand guidance after the sale. Beware of com-panies attempting to repurpose or adapt oldequipment to aluminum repair that was origi-nally designed for other jobs. There are alsolegitimate businesses with great pricing, butno local support. Caution should also be takenwith local suppliers who deliver equipmentwithout instructional knowledge or technicalbackup.
So, when it comes to joining the revolu-tion and doing so on your own terms, you can
either place your bet on suppliers who areable to support you through the process orcompanies ready to take your cash with abluff. The choice is yours. H&D
Pat O’Neill, owner and operator of ChesapeakeAutomotive Equipment, began his 40-year careerin the industry as an ASE-certified mechanic.Chesapeake Automotive Equipment handles theproduct needs for collision and automotive repairshops; the company provides customers withdecades of experience through personalizedtraining, service and sales. Chesapeake Automo-tive Equipment distinguishes itself by ensuringan up-to-date experience on the best technolo-gies in the collision repair industry, including thePro Spot Family of welders and aluminum repairequipment. Pat can be contacted at (800) 604-9653 or [email protected].
A view from the supplierside of the industry. VENDOR
CORNER By PAt o’nEill
49February 2015
THE ALUMINUM REVOLUTION“Aluminum is coming! Aluminum is coming!”
50 February 2015
ADVERTISERS’INDEX
Alexander & Cleaver............................29
Alexandria Toyota ................................36
All Foreign Used Auto..........................7
Audi Group ..........................................21
Axalta Coating Systems ......................OBC
BMW Group ........................................26-27
BMW of Bel Air ....................................IBC
BMW of Fairfax....................................3
BMW of Rockville ................................IBC
BMW of Towson ..................................IBC
CAPA ..................................................8
Chesapeake Automotive Equipment ..50
Empire Auto Parts................................50
Ford Group ..........................................13
Future Cure ........................................43
GM Parts Group ..................................19
Hendrick Honda ..................................48
Honda Group ......................................23
Hyundai Group ....................................31
Koons Ford ..........................................29
Malloy Auto Group ..............................4
Mazda Group ......................................33
MINI Group ..........................................9
MINI of Baltimore County ....................IBC
Mitsubishi Group..................................37
Mopar Group ........................................17
Nissan Group ......................................22
NORTHEAST® 2015 ..........................45
NuCar ..................................................47
O’Donnell Honda ................................36
P&L Consultants..................................35
Packer Norris Parts ............................11
Porsche Group ....................................30
PPG ....................................................IFC
Russel Toyota ......................................48
Safety Regulations ..............................7
Steck Manufacturing............................50
Subaru Group......................................38
Toyota Group ......................................25
VW Group............................................16
51February 2015
